Industries

Three pence of profit on a pint, and everyone wants a share

Wet-led pubs made around 3p profit for every pound spent on a pint in 2026, down from 5p the year before. Full service restaurants run at 3 to 6 per cent net. At those margins a supplier price rise that goes unnoticed for six weeks is not an annoyance, it is the year.

Restaurants, takeaways, pubs and cafes

What goes wrong

Delivery commission is invisible in the accounts

Platforms take 25 to 35 per cent, so a £12 dish returns £8.40. It does not show in cost of sales, so gross profit looks fine while net quietly disappears. Delivery menus need 8 to 12 points more margin to break even and most operators price them identically.

Costing by hand cannot keep up

Manual dish costing runs around 28 minutes per menu item and prices move weekly. A dish costed at 30 per cent food cost in January can be running at 36 by March with nobody aware. The gap between theoretical and actual should stay under two points.

You get benchmarked whether you like it or not

HMRC publishes expected profit figures for restaurants and compares filed returns against them automatically. A business can be entirely straight and still sit below the range because of delivery mix, discounting and waste. The difficulty is evidencing that after the fact.

A tie removes the obvious lever

Tied tenants buy at pubco prices, which costs 8 to 12 points of gross profit against free of tie. Every piece of advice about switching suppliers and negotiating harder is useless to roughly ten thousand tenants who have no supplier to switch.

Available now

Margin Manager

  • Invoice scanning: photograph a delivery note and the prices update
  • Recipe costing that updates every dish when an ingredient price moves
  • Delivery margin by dish, so you can see which ones lose money on platform
  • Stocktake variance tracked over time rather than counted and forgotten
  • Menu engineering, sorting dishes into what earns and what does not
  • A dated waste, comp and discount log that doubles as evidence
  • Platform income reconciled against what the platforms report to HMRC
See Margin ManagerFrom £49 a month, 14 days free, no card needed